SEP moves into infrastructure investment

Kenny Wastell
02 September 2014

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Scottish Equity Partners (SEP) has launched a £135m energy infrastructure fund, acquired SSE Pipelines from UK-based energy supplier SSE and recruited an infrastructure team.

The new vehicle, Environmental Capital Fund (ECF), marks SEP’s first foray into infrastructure investment. The vehicle is intended to complement the GP’s Environmental Energies Fund, which launched in 2011.

The new team appointed to manage the fund will be led by existing SEP partner Gary Le Sueur.

Following the £52.7m acquisition of SSE Pipelines, ECF will look to diversify by deploying capital across clean energy infrastructure projects including hydro power, heat pumps and district heating schemes.

Secondaries investor Lexington Partners led a syndicate of investors in the vehicle, with SSE themselves also committing £13.8m.

SSE has more than 130,000 gas connections to residential and commercial customers within the UK. The sale of the asset forms part of SSE’s £1bn debt reduction strategy, as the public company looks to offload non-core assets.